The BOs that investors can look into cover commercial, investment and Islamic banking, insurance and takaful, and asset and wealth management. These opportunities will account for 71.9 billion ringgit in incremental gross national income (GNI) by 2020, creating 229,000 jobs including 100,000 professional and technical positions.

The following are the areas of growth in the financial sector.

BO 1 - Commercial banking

To help build the commercial banking sector, the government is inviting businesses to invest in areas that cover innovative financial services, branchless banking, support for small and medium enterprises and personal finance. The segment has a large profit potential. Underneath its expected annual growth of 7 per cent through 2020, commercial banks will be the financial sector's largest income generator, contributing 29.6 billion ringgit in GNI by 2020.

BO 2 - Investment banking

After the Felda Global Ventures and IHH Healthcare initial public offerings (IPOs) held this year, investors can look forward to more exciting IPOs as the government privatises more government-linked investment companies (GLICs). Businesses can anticipate a more robust investment banking segment as Malaysia exploits its Qualified Domestic Institutional Investor status with the mainland and mutual recognition agreements with Hong Kong and Dubai. Consolidations in several key sectors are also expected to increase M&As. All these developments are expected to fuel the 15 per cent projected yearly growth from 2010 to 2015, and

10 per cent expansion from

2016 to 2020.

BO 3 - Islamic banking

Being one of the core strengths of the Malaysian financial sector, the Islamic banking segment offers some of the most exciting investment opportunities in the sector. Aside from world leadership in issued and listed sukuk, additional investment options lie in Islamic pawnbroking or ar-rahnu and opportunities arising from the migration of money lending business to conventional or Islamic banks. Growing 15 per cent annually from 2010 to 2015, and by 12 per cent from 2016 to 2020, this BO requires 50.2 billion ringgit in additional capital funding.

BO 4 - Insurance and takaful

The main attraction of takaful and retakaful is their combined 20 per cent forecast annual growth from 2010 to 2014, and 15 per cent from 2015 to 2020. This expansion outpaces conventional insurance and reinsurance, which is forecast to grow 6 per cent yearly through 2020. The government sees

greater insurance take-up brought on by Malaysia's information campaign on financial planning and insurance protection. Further consolidation, rationalisation and development of cheaper distribution models for micro insurance will open up channels for private investments.

Businesses can invest in segments such as developmental financial institutions, private equity and venture capital which require some 1.9 billion ringgit in overall funding under the ETP.

"We encourage companies to check out these opportunities, go out of the country and grow their services," Emir says. "We will help them talk to other countries and provide them support through policy development."

This article appeared in the South China Morning Post print edition as Investment opportunities abound amiddevelopment